Human Resources Strategy, Sonoco Strategy - Essay Example

?Running Head: HUMAN RESOURCES STRATEGY Human Resources Strategy Insert Insert Insert i. What was happening to the packaging company at the time of the case at the time of the case, we realized that the packaging company had successfully achieved uninterrupted growth coupled with impressive financial success which would have lasted had the management and human resources department put in place the right personnel with proper management skills and expertise I the packaging field. The availability of cheap labor positively impacted on the company by then with the influence of international trade especially with the countries like China and India which are well known for their involvement in thriving businesses globally. However, there followed numerous issues that required a lot of concern especially fluctuation in productivity which lead to interrupted growth. The unreliable market experienced during the case would have been as a result of poor production which is also a consequence of lack of proper management by the group managers and corresponding supervisors within the packaging department (Armstrong, 2008, p. 13). Some of the consequences of poor management experienced in the case study include but not limited to reduction in sales which negatively impacted on the company creating a perception that the company is losing consumer interest in the global market (Heneman and Judith, 2006, p. 16). In order for the company to go through such situations, there must have been issues that compromise the quality and reliability of the company in carrying out the designated product packaging work in line with the company objectives, missions and visions for the near future which is aimed at not less than creating large economies of scale within the global context (Sparrow, 2009, p. 71). ii. How will these changes impact on the Sonoco Strategy? Considering then situations that were experienced within the past decades, it would be wise to utilize the scenarios to determine the current requirements that would enable the company achieve to the required quality and quality so that the company becomes /retains the lead and preference in the packaging sector within the global market (Sparrow, 2009, p. 73). However, it is adept to include both the management and employees in a common strategic plan so that all the required issues are addressed from within a common centre that is able to communicate with the other branches so that the company achieves a common goal in their quest to raise the company to higher and better business class at both levels (Dr. Kilia, 2005, p. 75, & Warne, 2005, p. 84). Through inclusion of the entire stakeholders in the decision making process especially the employees; it is likely that the company would gain from the strategy as the employees would recognize that their concern is necessary in the company’s strategic plan (Schein, 1968, p. 28, & Stewart, 1991, p. 61). This would in itself act as a morale booster hence high output would be achieved from the employees at drastically low production cost. A reduction in production expense with increased productivity is a sign of profit to the company (Purcell and wright, 2007, p. 22, &Ehnert, 2009, p.105). 2. The Cindy Hartley’s objectives for change at Sonoco As the vice president of the Sonoco Company, Cindy Hartley came up with strategies to control fixed costs and reduce expenditure which worked well at some time but later experienced a lot of challenges due to then variation in the value of US dollar and other economic factors like decline in trade with Asia due to financial crisis. However, Cindy perceived a lot more productive measures after a hint from the new CEO, DeLoach’s (Revans, 1982, p. 42, & Temple, 2001, p. 38). Despite the short stay at the company, five years was enough for Cindy Hartley to come up with new policies to positively impact on management and performance to enhance development. However, a lot of emphasis was made on compensation and succession plans so that the company would retain quality employees with required and relevant skills that would enhance productivity within the company (Storey, 2007, p. 21). Aimed at reducing then production cost, Cindy suggested to the five member task force that the company would only perform to the expectation s and beyond after recognizing the management talents and accountability of employees, this could be best done through the departmental group managers who are fully responsible for the operations within their respective production areas (Revans, 1982, p. 39, & Temple, 2001, p. 42). Secondly, Cindy suggested that the human resource support and talent across the company divisions would be integrated to form one Human resource centre. This is a system that would control all the human resource programs to enhance conformity in all the branches of the company (Heneman and Judith, 2006, p. 37). The other concern raised by the vice president of human resources within the Sonoco Company was that the company comes up with a strategy that would fully utilize the potential of the human resources in the provision of customized and strategic support to the businesses within the company chain through then GMs (general Managers). This was aimed at fulfilling a concern raised b the New CEO “Deloach” that stated that ‘having the best strategy is an idea and implementing it by people is another duty.’ It would be needless to put in place strategies that would not be implemented however much the ideas would be helpful to the company. The Vice president reiterated that it was within the jurisdiction of the task force members to make the final verdict on the best strategy to adopt in order to move the company forward (Storey, 2007, p. 27). 3. The success of the human resource changes at Sonoco Considering the scenario in the case study, it would be difficult to have a clear conclusion on then strategy in place. But as per the information and objectives from the vice president of the Sonoco Company (Davis, 1967, p. 18, & Koch, 2006, p. 126); It would be adept to affirm that there is likely to be improvement in the company production through considering full participation of the human resources department in the company as well as the full involvement of the employees in the strategic plan. It created an all inclusive strategic plan that recognized the voices of all stakeholders in the production and packaging company branches (Storey, 2007, p. 55). After considering the various functional and active departments within the company which most of the employees embrace, the sequence of changing the human resources strategy could be ranked among the best options that a company would do in order to reverse the downward trend as experienced in the Sonoco company in the past (Storey, 2007, p. 39). Acknowledging the stakeholders is one of the best ways to achieve the company objectives. This creates a closer relationship with the employees and other staff members hence being able to obtain some information that would drastically reverse the organization’s production trend with improved product quality and quantity as the workers embrace the rapport between them and the staff (Kearns, 2009, p. 194). However, after recognizing the importance of including t he employees and managers in the restructuring of the organizational strategic objectives and human resources, it is adept that the company embarked on processes that would constantly increase and motivate employees for instance awarding the best achievers in the production process, promotion with respect to dedication and commitment to the production and packaging requirements. The progress could be achieved through performance improvement and accountability; and awarding the departments that produced both quality and quantity products at low costs reducing the costs (Condrey, 2010, p.49). The changes are likely to create more opportunities both within the national and international markets due to better quality and drastic changes that improves the whole company human resources strategy prompting every member of staff to be accountable for their work. To some of the members who do not work towards the progress of the company, they would have no option other fulfilling then requirements stipulated in the new HR strategy for the company to retain their positions within the company (Moody, 1997, p.63). Being that the process of change implemented in the new HR strategy would impact on all the stakeholders including the human resource department, it is adept to have a perception that the sequence adopted would create more opportunities for the company (Storey, 2007, p. 48). Considering all t he above proofs, I declare the sequence as the right option that the company had in place to salvage the worrying downward trend in both production and parking. Once the situation is taken care of the company would be able to venture in more production lines hence large economies of scale (Kirkbride, 1994, p. 102) 4. Sonoco company having been operational for over 100 years with branches in about 33 countries; it is likely that the company is still aiming at increasing and expanding the branches as they capture a wider market in the global market (Knoster and Thousand, 2000, p. 167). With the anticipated improvement, it would be better to have a centralized control tower so that all the administrative functions are carried out through a centralized office. With the involvement of advanced technology and internet, there are other lucrative options like engaging in cloud computing so that the company operates from a central office that every business person would only require the link to access the site and engage in business without physically travelling to the offices (Storey, 2007, p. 55). Centralized HR strategy and management is an example of management system whereby all the HR services within the company are managed from one place regardless of the number of branches available and their location within the global market (Storey, 2007, p. 55). Through centralized office there would be uniformity as the various countries and representatives would obtain information in regard to the products and services from the same source reducing conflicting information that would compromise the company management strategies (Armstrong, 2008, p. 24). In addition, this would reduce the cost incurred in setting up other HR and other administrative offices in other countries which directly impact on production through reduction in cost of production hence maximizing on profits (Storey, 2007, p. 55). Pros of centralized Hr structure in Sonoco Company The resources would be used cons effectively with high productivity, there would be competition from other branches in order to achieve the best production; this is only effective when resources and management are run from a central place so that every branch receives equal consideration from the decision makers. Working under a central management authority requires tireless work hence the various branch managers would work tirelessly with the employees to attain the required bench mark (Kirkbride, 1994, p. 107) There are high opportunities for promotion and performance improvement hence every branch would struggle to act as an example to the other branches within the global market. This would call for close link and rapport between the staff and employees hence proper workmanship (Kearns, 2009, p. 121). Through accountability every staff member and employee would struggle to at least show signs of improvement in the line of production. In addition, due to high expectations employees would also struggle to advance their career education so that they could gain high or better qualification to create competitiveness in the job market being that there are many people with better qualification who are seeking the same jobs (Moody, 1997, p. 72). Constrains Despite the efforts to perform, all the managerial decisions are directed from a central office hence not even the direct supervisor would defend or punish/ warn an employee in case of a mistake. The company management are not directly linked o the employees hence complications when problems arise. Employees work under pressure disregard of the motivative packages as the direct supervisors do not have any clues on who may be retrenched and when (Kirkbride, 1994, p. 110). Hybrid HR management structure This is a kind of management structure where the company embraces both centralized and decentralize HR management where applicable. However, it is also a good strategy but considering then situation experienced in the Sonoco Company (Gunter, 2006, p. 15, & Kendrick and Vershinina, 2010, p. 203). Depending on the kind of production the company management should be able to decide on which kind of organization and human resource strategy to adopt in order to achieve the company’s strategic and HR objectives. Having branches in different parts of the global market, Sonoco company would not opt for this kind of HR strategy as it would create un even and non confirmative products and resources within the market compromising on product quality and quantity which would lower the performance of the company in the global market (Armstrong, 2008, p. 24). The pros of hybrid HR management strategy would only influence a few countries/ markets while constrains of deploying this kind of strategy outweighs the pros. Other than that, the impacts of the hybrid strategy would derail the company financial capability compromising on product quality (Fitz- Enz, 2010, p. 23). This is because the branches that are situated in resource challenged markets and production environment would blame the other branches situated in places with better markets and other opportunities (Davis, 1967, p. 11, & Koch, 2006, p. 130). The blame game would be the actual information and the poor market which negatively impacts on employee morale taking advantage of the poor working conditions of numerous issues that negative it is adept for the Sonoco Company to adopt a centralized HR strategy do that the whole company would be managed from a central office (Condrey, 2010, p. 63). 5. Sustainability of the HR strategic changes In every organization or company, it is perceived that any positive idea that would lead to progress of the organization should not only be adopted but maintained I order to achieve the goals and objectives of the company (Bondarouk, 2011, p. 147 and Jackson et. al., 2007, p. 183). The same case applies to the Sonoco Company where numerous changes are to be implemented with an aim of improving the company performance within both the national and global market (Newstrom and Davis, 1993, p. 19). In order to accomplish the strategic obligations of the company, Cindy Hartley should not sit back and watch the performance of the company but instead the vice president should form a committee to examine the accomplishment of the strategic HR laws aimed at improving performance and product quality among other managerial chores within the company. The team should aim at maneuvering over the area under which the strategy is to be implemented to affirm the actual performance. This would enhance the company managerial functionalities creating more opportunities to the upcoming entrepreneurs in different business fields (Fitz- Enz, 2010, p. 32). The perceived changes within the company could only be realized when there are individuals responsible for the production and packaging so that the company would gain the lost reputation in regard to product quality. The Vice president should consider the progress made so far before embarking on new strategies that would require more time and resources (Kearns, 2009, p. 104). The HR should organize performance through three levels of existence i.e the cognitive domain where the employees should think, feel and act, hence effective and action domain should be key in implementing the changes within the HR accordance with the regulations that should not be bias in line with socio-cultural factors to enable accomplishment and accountability in a free and fare manner where every stakeholders bares his/ her own issues. References Armstrong, Michael. (2008). 4th Edi. Strategic Human Resource Management: A Guide to Action, New York: Kogan. Bondarouk, T., Ruel, H., J. C. Looise. (2011). Electronic HRM in Theory and Practice. New York- USA: Emerald Group Publishing. Condrey, E., Stephen. (2010). 3rd edi. Handbook of Human Resource Management in Government. Washington- USA: John Wiley & Sons. Davis , K. (1967). Human relations at work: The dynamics of organizational behavior. 9th ed., New York: McGraw-Hill Dr. Kilia, H. (2005). A Reading for HR Professionals. 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